1. Home
  2.  → 
  3. Property Law
  4.  → Who pays for repairs at a rented commercial property?

Who pays for repairs at a rented commercial property?

On Behalf of | Jun 11, 2024 | Property Law

A commercial lease is often substantially different than an “average” residential lease. The average commercial lease usually lasts for multiple years instead of a single year. Commercial landlords typically charge more per square foot for commercial property than people pay for residential properties.

However, they may offer a variety of services in return for those additional costs. In some cases, landlords even make drastic modifications to commercial properties to better suit the needs of incoming tenants. They may or may not provide maintenance and repair services after the tenant assumes possession of the unit.

Issues can arise with commercial properties for a variety of reasons. Maybe there is a major storm that causes damage to the roof. Perhaps there are issues caused by the age of the facilities. Who typically has an obligation to handle the repairs or maintenance needs of a rented commercial property?

Each commercial lease is unique

When people rent residential properties, the standard is for the landlord to cover property repairs and maintenance expenses. However, no such standard rule applies to commercial leases. Depending on the unique terms included in the lease, the landlord, the tenant or both parties could have responsibility for maintenance and repairs.

There are actually a variety of different types of commercial leases that people can sign, and each of those types of leases includes different terms regarding property repairs and maintenance. For example, a full-service or gross lease usually leave the landlord responsible for maintenance and any costs generated by maintenance.

A net lease passes some of the costs of maintaining the facility to the tenant, meaning that the landlord usually handles repairs and maintenance issues. A triple net lease makes a tenant responsible for building maintenance costs and possibly the actual maintenance needs, while a double net lease holds the building owner responsible for building maintenance.

Tenants worried about property repairs may need to negotiate with their landlord in some cases. Executives and business owners preparing for a commercial tenancy may need to look at the lease carefully to ensure that there are reasonable terms for the allocation of maintenance and repair responsibilities.

Reviewing lease paperwork with a skilled legal team can help establish who is theoretically responsible for repairs and maintenance at a leased commercial property. In some cases, it may be necessary to take legal action when a commercial landlord does not maintain a property in the ways that they should.